Half of Kiwis planning to increase KiwiSaver contributions

More than half of New Zealanders plan to increase their KiwiSaver contributions when changes take effect this week.

More than half of New Zealanders plan to increase their KiwiSaver contributions when changes take effect this week, according to new research.

The ASB survey found 51% of those surveyed plan to increase their KiwiSaver contributions to the new default rate of 3.5% from April 1.

A further 19% said they were already contributing 3.5% or more, while 15% will look to remain at 3%, and 10% indicated they plan to stop contributing altogether.

Announced during last year’s Budget, the 0.5% increase in the default KiwiSaver contribution rate is part of a phased move which will take the rate to 4% in 2028.

The changes are intended to create higher savings in retirement for Kiwis.

For a person earning $70,000, a 3% contribution rate means you’re currently paying $2100 a year, or about $40.38 a week, into your KiwiSaver.

But from April 1, this will increase to $2450 a year, or about $47.11 a week.

“It’s really positive to see that many are already making higher voluntary contributions to their KiwiSaver accounts, which shows confidence in long‑term saving goals despite short‑term uncertainty,” ASB senior economist Chris Tennent-Brown said.

The survey of more than 820 people was conducted in March, during a period of global uncertainty and market volatility due to the Middle East conflict.

“Even in uncertain times, people recognise the value of staying the course,” Tennent-Brown said.

“KiwiSaver is designed to reward long-term commitment, and these changes help strengthen retirement outcomes over time.”

However, one in four respondents aged 18–24 said they weren’t aware the changes were coming.

Overall, 57% of people said they were aware of the upcoming KiwiSaver changes, while 17% were not.

A further 26% said they were aware a change was coming but were not across the details.

“According to our latest Investor Confidence report, younger New Zealanders show strong confidence in KiwiSaver as a way to build long-term wealth, even if they’re not across every detail of the policy changes,” Tennent-Brown said.

“That’s important, because younger members stand to benefit the most over time from higher contributions.”